Forex Daily Analysis – January 21st 2009

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After yesterday’s ceremonial inauguration of Barack Obama, today is back to normal. Regular economic news will dominate forex trading.

The German PPI (Producer Price Index) is expected to show a fall of 1.1%. Also from Europe, yet another speech from ECB’s Jean Claude Trichet. EUR/USD could fall more after Trichet’s speech.

Britain, which saw it’s currency collapse, will face new and important economic figures:  Claimant Count Change is expected to stand at 82,000.

Another major release is the  MPC Meeting Minutes, which will reveal the internal talks at the BoE, before cutting interest rates to a record low, two weeks ago.

Also in Britain:  Average Earnings Index,  Public Sector Net Borrowing, monthly  Prelim M4 Money Supply, and  Unemployment Rate, expected to rise to 6%. Big day for the British pound. Watch out for moves in GBP/USD, GBP/JPY and EUR/GBP.

In Canada, there was a rate cut yesterday: BOC dropped the rate by 0.5% to 1% only. It could go as low as its neighbor from the south. Kathy Lien suggests it could get next to zero. Today, the monthly  Wholesale Sales will shed some more light on the Canadian economy.

In Obama’s USA, there will be a speech by  FOMC Member  Timothy  Geithner, and also the  NAHB Housing Market Index.

Happy Forex Trading!